Cobham will pay government PS70m to settle long-running tax dispute.
Byline: ALEX DANIEL @alexmdaniel
DEFENCE firm Cobham has agreed to pay the government nearly PS70m to settle a long-running tax dispute.
Shares rose 0.6 per cent yesterday as the FTSE 250 company announced it would cough up after reaching an agreement "in respect of a significant, previously-disclosed and long-running dispute".
The dispute was in connection with the availability of interest deductions on one of Cobham's internal financing structures, which was in place between 2008 and 2014.
The company, which is Britain's third-biggest aerospace and defence contractor, said it would make a oneoff tax payment of PS55m within the coming two months, together with a one-off interest payment of PS14m, "to finally settle the group's exposure to this matter".
"This settlement is within the amounts previously provided by Cobham for tax," it told markets.
Separately, Cobham said it still faces previously-announced investigations relating to European state aid. These could leave the group with an additional tax bill of up to PS60m.
Cobham is known for its air-to-air refuelling technology.